Fire up your smoker for cooking 250-300 F. Use a lighter wood such as fruit wood for smoke.
Note: You can get the beef mixture prepared and onto the smoker while preparing the tomato mixture. Since the beef smokes a bit first, you don't have to have the tomato base ready at the beginning.
Place all ingredients into a large bowl. Using your hands, combine the ingredients and form into a loaf.
Transfer the loaf to the top rack of your smoker.
Optional: Place a disposable pan underneath to catch any drippings. I do this only to make cleanup easier. If the drippings will directly onto hot coals or a hot surface, you may want to catch them in a pan so they don't burn.
Smoke the loaf for 1 hour - 1 1/2 hours to cook out some of the fat. It's up to you how much fat you want to remove, just remember that you want some of that fatty flavor in the final chili so don't completely cook the loaf.
Remove the disposable pan (if using) and replace it with the pot of the tomato mixture.
Continue smoking another 3 minutes - 1 hour or until the beef loaf has reached 155 F.
Remove the loaf and chop into small bite-sized crumbles. Transfer to the tomato mixture and stir.
Smoke another 2 hours, stirring occasionally, until the chili is your desired consistency.
Serve!